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The global property management market size was USD 13.88 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with property management software/services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 8.7% in 2020 as compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 15.10 billion in 2021 to USD 28.21 billion in 2028 at a CAGR of 9.3% in the 2021-2028 period. The steady rise in CAGR as attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Market growth is mainly driven by a prerequisite for tools and platforms to tackle customers' changing real estate preferences and the rising need for better consumer handling and support. Property managers and real estate agents are focusing on leveraging property management software's benefits to expand their customer base by following a unified technology platform.
The real estate sector is going through an accelerated pace of transition characterized by the evolving role of hotel and lodging brands and a nascent use of a platform approach for customer retention. As a part of business strategy, key players are highly investing in research and development activities, which have further elevated property management solutions. For instance, in 2018, Oracle Corporation announced an update for Oracle Property Manager in compliance with IFRS 16 and US GAAP for ASC 842. The updated product features compliance reports with ROU and liability balances, lease accounting transformation, and lease management with enhanced reporting.
Adoption of Property Management Solutions to Boost Market amid Coronavirus
COVID-19's impacts are being felt around the world, and real estate companies are being affected in various ways, depending on region and asset class. In the short term, real estate managers are concerned with maintaining value and liquidity, keeping visitors and tenants safe, including increased cleaning measures, and adhering to governmental standards. Although many schools and offices are closing and businesses are considering ‘work-from-home options, the virus's contagious nature means that the risk of infection is always present, both indoors and out. People are also flocking in large numbers to public places like offices, supermarkets, and hospitals.
It's even more critical for property owners, operators, and management teams to be agile and organized now that Covid-19 has been formally categorized as a pandemic by the World Health Organization to continue reducing infection risks within buildings and limiting potential transmission events. The COVID-19 pandemic, on the other hand, has provided property managers with an opportunity to pause, reflect, and use their time in lockdown to consider introducing new processes that will make life easier once things are back to normal. As a result, smart processes and AI-based technology are more likely to be implemented over time.
In the new COVID-19 environment, creating health and safety plans as new laws is a key component for property managers and real estate agents to reduce operational risk. Furthermore, as more employers encourage, and in some cases require, their workers to return to work, building managers are faced with new challenges in developing COVID-19 operational plans that meet their tenants' growing demands. As the situation gets back to normal, people and tenants keep occupying new places for residential and commercial applications that will contribute to the market's growth.
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Evolving Trend of Workforce Mobility to Strengthen Growth
Many people nowadays tend to work from home rather than from a local office, corporate headquarters, or a global branch of a company, necessitating versatility in access to office resources and data. Furthermore, some companies are using virtual workplaces to reduce their physical infrastructure requirements to a bare minimum, which would help them become more agile and make better use of their office space.
Many organizations are looking for management strategies such as workplace management, mobility management, and other integrated facility management to keep the pace and speed of work unbroken and handle a large workforce. Associated real estate agents and property managers may use these solutions to keep track of all the properties they manage and all the maintenance work that needs to be done on them. As a result, the growing trend of workplace mobility is propelling the property management industry forward.
Increasing Demand for SaaS-based Software/Solutions to Aid Property Management Market Growth
Cloud computing and SaaS (Software-as-a-Service) integrated services have gained prominence as a preferred method of delivering services. Organizations of all sizes will benefit from subscription-based SaaS solutions. Firms operating in the market are increasingly turning to SaaS solutions to simplify processes by automating workflows and manual input. Firms can reduce the difficulty and expense of on-premises implementation by implementing SaaS solutions. SaaS software helps large multifamily property management companies incorporate various types of software across their portfolio easily. In addition, the SaaS model is important for multi-vendor device compatibility with legacy systems.
Real estate companies are data-driven, and employees rely on up-to-date information to make crucial decisions. Offline networks make it difficult to access data from anywhere, creating a huge roadblock throughout the decision-making process. On the other hand, SaaS solutions allow users to access information from any location using any device with an internet connection. Besides, the SaaS model plays a role in enabling multi-vendor platform integration in existing systems. Property managers may use a SaaS platform to integrate their property solutions with advanced payment systems for quick and easy transactions.
Asset Opportunities to Reflect Broader Range of Risks (Rising Opportunities will be Accompanied by Greater and more Diverse Risks)
As the property business globalizes, the scope of risks will get more extensive. The highest priority on the rundown will be nation or city hazard including political risk and the peril that advantages may just be appropriated. If nations are socially or politically unstable, there may be a threat of monetary harm to property businesses. For developing markets, rising investment in real estate may hold an array of dynamic risks. Besides, the scarcity of funds means that real estate agents tend to work with local developers, which entails various operating risks, such as delayed construction sites or even fraudulent activities. This may impede this industry’s growth.
Software Segment to Capture Large Market Share
On the basis of component, the market is segmented into software and services.
The software segment is expected to hold a large market share during the forecast period. The software enables property managers and real estate individuals to carry out property-related operations efficiently and cost-effectively. Previously, property owners and landlords used to hire third-party real estate agents to manage their properties, requiring high time and extra cost. However, the availability of robust property management software has automated and simplified property managers' and owners' tasks.
The services segment is further bifurcated into consulting and support, and maintenance. With the growing adoption of property managing software, the demand for related services is expected to boost, reflecting a high growth rate during the forecast period.
Cloud-based Segment to Aid the Market Growth
The deployment segment is categorized into cloud and on-premises.
The on-premises segment is expected to hold the largest share in 2015. The on-premises deployment of this type of software avoids security concerns over the internet; thus, minimizing the threat of data breaches and cybersecurity attacks. Whereas, cloud-based segment is expected to overcome the on-premises segment in terms of market share during the forecast period.
Cloud-based software helps landlords and property managers store all documents such as legal contracts, tenancy agreements, and contractor SLAs (Service Level Agreement) in a single platform with minimal cost. Improved protection is another advantage of cloud services software. For conventional property applications, security upgrades are rare and far between, making the data vulnerable to hacking, power outages, and physical disasters.
Residential Segment to Dominate the Market Owing to Growing Development of Residential Buildings
Based on the application, the market has been segmented into commercial and residential.
The residential segment is expected to hold the largest market share. This segment's growth is mainly due to the need for property management software to manage residential properties such as houses, single and multi-story apartments, and bungalows. With the continuously rising population, the demand for residential buildings is projected to see substantial growth. Thus, to manage this increased number of residential properties, the need for property managing solutions will be elevated.
The commercial segment is expected to witness steady growth over the forecast period. A commercial property manager manages non-residential properties such as offices, retail spaces, industrial buildings, and storage facilities. Commercial property owners maintain detailed administrative and financial reports and maintain up-to-date all relevant repairs, fees, mortgages, and benefits.
The commercial segment is further divided into retail, government, construction and real estate, and others (education, industrial, and hotel). Among these, the adoption of this software in construction and real estate is likely to witness high growth during the forecast period.
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Market to Witness High Growth Due to Rising Adoption among Property Managers
Based on the end-user segment, the global market has been segmented into property managers, housing associations, real estate agents, and others (third party agents, property investors, etc).
The property managers segment is expected to witness high growth during the forecast period. To certain property managers, the management of their daily duties requires a vast amount of balancing activities around them. Manually performing company activities such as monitoring, rent payments, and handling repair orders are time-consuming and sometimes daunting, thus there has been an increased demand for automated software that enables property managers to manage multiple business operations.
Adoption of this software among third-party agents and property investors is expected to grow at a healthy CAGR during the forecast period.
North America Property Management Market Size, 2020 (USD Billion)
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Geographically, the market is segmented across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America captured maximum property management market share in 2020. E-commerce growth in North America is expected to create robust opportunities for real estate players and property managers to invest in property management software/services. External investment in the real estate sector across the region is expected to become more significant in the forthcoming years.
Real estate wealth managers may use international real estate funds to diversify more efficiently due to many investment choices and the scope of economic conditions. Metropolitan areas in the region are leading the battle on population and economic development lines. As a result, urban regions have the most profitable and opportunities-rich real estate markets for this type of management software. The performance of real estate investments in the region strongly correlates with Gross Domestic Product (GDP) growth and demographic trends.
The standpoint for monetary development in the region is more favorable for metropolitan zones than the nation in general. Political changes affect segment improvements, for example, relocation. For example, the ongoing United States presidential political decision and British vote to leave the European Union may have a segment and a monetary effect at both a nation and city level. Moreover, constantly updating the region's digital strategies and infrastructure has expanded the use of predictive analytics and business intelligence to make buildings future-ready and better utilize IoT to design and redesign buildings. This increased transparency has strengthened the investment climate for real estate markets. This has boosted the market growth in North America.
The growth of the Asia Pacific market is expected to grow at an exponential CAGR during the forecast period. In the developing countries of the Asia-Pacific, the middle-class population is increasing rapidly. In particular, China, India, and Indonesia will increase their relative size in terms of global consumption by the middle class. This creates opportunities for real estate investment, as families can spend more than their essential needs. The logistics, retail, and hotel industry is now undergoing a significant transition as it adapts to the rising demands generated by the increasing growth of e-commerce. The insistence on productivity and expense drives logistic companies to make the most technological advancements and technologies, such as robotics. Similarly, Co-working and shared workspaces have taken off in Asia Pacific in the past few years, adding a tech edge to the stodgy serviced-office market and offering decent returns for landlords.
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Changing laws and the importance of greater transparency will have a significant effect on the real estate sector. For example, the revaluation or elimination of government-funded social, senior housing, and owner-occupied financial assistance in some countries provides investment opportunities in the private rental and healthcare sectors. Moreover, low housing interest rate proposals by governments in the region have made beneficial additions to the growth of the market.
Entrata, Inc., Appfolio, Inc., and Yardi are Offering Targeted Solutions for Owners and Managers of Various Rental Property Types
Entrata, Inc., is a global company that provides software and data analytics solutions for real estate companies. The company’s solutions benefit owners and property managers to manage buildings such as residential, commercial, and hotels. With its efficient SaaS solutions, Entrata has emerged as the leading company that provides features such as applicant screening, revenue management, and utility management. These players are specifically focusing on the commercial sector of the market to deliver advanced and efficient solutions to property managers and agents.
An Infographic Representation of Property Management Market
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The property management market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, applications, and the adoption of advanced technologies among several applications. Besides this, it offers insights into the industry trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors that have contributed to the growth of the market in recent years.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD Billion)
According to Fortune Business Insights, the global market size is expected to reach USD 28.21 billion by 2028.
Fortune Business Insights says that the market size stood at USD 13.88 billion in 2020.
By 2028, the market size is expected to reach USD 28.21 billion.
The market is expected to grow at a CAGR of 9.3% during the forecast period (2021-2028).
By application, the residential segment is expected to lead the market during the forecast period.
The increasing demand for SaaS based property management is one of the key drivers for market growth.
AppFolio, Inc., Archibus, Inc., RealPage, Inc., Trimble, Inc., and Yardi Systems, Inc. are the top companies in the market.
By end user, the property manager segment captured major market share.
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